First time buyers turn to bank of mum and dad

Most parents of young adults are now resigned to using their life savings to help dependents onto the housing ladder, research shows.

An estimated 71 per cent of UK parents of 18 to 35-year-olds have either already contributed to first-time property deposits in recent months or expect to imminently.

Young people in the South East, where average house prices eclipse those anywhere else in the country, appear to be the most reliant on the bank of mum and dad.

Over 80 per cent of parents of would-be first-time buyers in Brighton have helped or plan to help their children save for a deposit, closely followed by 76 per cent in London.

Among the UK’s top 20 biggest cities, this compares to 63 per cent in Cardiff, 63 in Newcastle and a low of 54 in Norwich.

The data was recorded as part of online investment site True Potential Investor’s quarterly Savings Gap study, which has questioned over 32,000 UK workers about their saving and spending habits to date.

The findings come amid an ongoing housing crisis which has put home ownership out of reach for millions of young people.

High rents, inflated deposit requirements and a 250,000-per year shortfall of homes*, have made the property ladder increasing difficult to access.

The average deposit for first-time buyers is £33,000 nationally – around 16 per cent of the asking price - and around £100,000 in London.